An Income Tax Return (ITR) is a document through which individuals and entities report their income, deductions, and tax obligations to the Income Tax Department of India. Filing an ITR is essential for compliance with tax laws and is mandatory under certain conditions.
When is it Mandatory to File an ITR in India?
According to Section 139(1) of the Income Tax Act, 1961, filing an ITR is mandatory if:
- Gross Total Income exceeds the basic exemption limit.
- Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) is ₹25,000 or more (₹50,000 for senior citizens).
- You wish to carry forward losses.
- You wish to claim a tax refund.
- You are a resident with assets or financial interests outside India.
- You are a resident and a signing authority in a foreign account.
Basic Exemption Limits for FY 2024-25 (Assessment Year 2025-26)
The basic exemption limits vary based on age and tax regime:
Old Tax Regime:
- Individuals below 60 years: ₹2.5 lakh
- Senior Citizens (60–79 years): ₹3 lakh
- Super Senior Citizens (80 years and above): ₹5 lakh
New Tax Regime:
- All individuals: ₹4 lakh
Note: The new tax regime is the default, but individuals can opt for the old tax regime if they do not have business income.
ITR Forms Applicable for FY 2024-25
The Income Tax Department has notified various ITR forms for different categories of taxpayers:
- ITR-1 (SAHAJ): For resident individuals with income up to ₹50 lakh from salary, one house property, other sources (interest, family pension, etc.), and agricultural income up to ₹5,000.
- ITR-2: For individuals and HUFs not having income from business or profession.
- ITR-3: For individuals and HUFs having income from business or profession.
- ITR-4 (SUGAM): For resident individuals, HUFs, and firms (other than LLP) with total income up to ₹50 lakh and income from business or profession under presumptive taxation schemes.
Note: Ensure to choose the correct form based on your income sources and eligibility.
Key Changes for FY 2024-25
- Enhanced Rebate under Section 87A: The rebate has been increased to ₹60,000 for individuals with income up to ₹12 lakh under the new tax regime.
- Standard Deduction: The standard deduction has been increased to ₹75,000 under the new tax regime.
- Tax-Free Income Threshold: With the enhanced rebate and standard deduction, individuals earning up to ₹12.75 lakh under the new tax regime may effectively pay no tax.
Due Date for Filing ITR
The due date for filing the ITR for FY 2024-25 (Assessment Year 2025-26) is 31st July 2025 for individuals and entities not requiring audit.
Frequently Asked Questions (FAQ)
1. Who is required to file an ITR?
Individuals and entities must file an ITR if:
- Their gross total income exceeds the basic exemption limit.
- They wish to claim a tax refund.
- They wish to carry forward losses.
- They have foreign assets or income.
2. What are the benefits of filing an ITR?
Filing an ITR allows you to:
- Claim tax refunds.
- Carry forward losses.
- Apply for loans and visas.
- Maintain compliance with tax laws.
3. Can I revise my ITR?
Yes, you can file a revised return under Section 139(5) if you discover any mistakes or omissions in your original return, provided it is filed before the end of the assessment year.
4. What are the penalties for late filing?
Late filing of ITR may attract a fee under Section 234F:
- ₹1,000 if total income does not exceed ₹5 lakh.
- ₹5,000 if filed after the due date but on or before 31st December.
- ₹10,000 if filed after 31st December.
Note: No penalty is levied if total income does not exceed ₹ 5 lakh.
5. How can I file my ITR?
You can file your ITR online through the official Income Tax Department portal: https://incometax.gov.in
